Gambling Vs Investing Christian

For many people, the risk involved in investing can make the whole process feel a bit like gambling. But, truthfully, there is quite a big difference between the two. And that’s exactly why I decided to write this article. In fact, before we get much further, allow me to answer the very important question, is investing gambling?

• Gambling Vs Investing Christian Academy
• Gambling Vs Investing Christian Colleges
• Gambling Vs Investing Christian Beliefs

1. Though investment and gambling both cover some risk with them, investment is lesser risky or risk-free. Here we will discuss the risk associated with an investment in the stock market. In the case of direct equity investment, an investor needs to gather sufficient knowledge about the stock market and the stocks or shares he wants to buy.
2. No, investing is not gambling. While both involve risk, when you invest your money, you receive ownership of something in return. Gambling, on the other hand, is a wager between two parties that depends on a particular outcome and results in a gain for one, and a total loss for the other. So essentially, the biggest difference between investing.

No, investing is not gambling. While both involve risk, when you invest your money, you receive ownership of something in return. Gambling, on the other hand, is a wager between two parties that depends on a particular outcome and results in a gain for one, and a total loss for the other.

So essentially, the biggest difference between investing and gambling, is that when you invest your money, you are purchasing something of value. Whereas, when you gamble, you only receive some sort of value if you bet on the right outcome.

The Bottom Line So, when skeptics tell you investing is merely gambling by another name, refer them to the data. The data clearly shows that gambling is a no-win venture, and not at all comparable.

But that isn’t the only difference.

That’s why, for the rest of this article, I’m going to take a deeper dive into the top 5 reasons why investing is different than gambling.

Let’s get started!

Table of Contents

1. Investments Have Value

Gambling Vs Investing Christian Academy

As I mentioned at the beginning of this article, whenever you purchase an investment, you receive some kind of ownership in return. For example, when you decide to invest in real estate, you receive ownership of the property you purchase. When you purchase stocks or mutual funds, you receive a portion of ownership in one, or multiple publicly-traded companies. Even when you invest in precious metals (i.e. gold, platinum or silver), which tend to carry a higher-level of risk than many other investments, you receive ownership of the precious metal.

And here’s the thing, in nearly every case, if you invest in something, even if that investment decreases in value, you can still sell it.

That just isn’t the case with gambling.

I mean, if you bet $100 on a particular horse to win the Kentucky Derby, and it doesn’t, you just lost all that money. It’s all or nothing.

Talk about a big difference between investing and gambling.

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2. Proper Investing Puts The Odds In Your Favor

I don’t think it’s any secret, but when you gamble, especially at a casino, the odds are not in your favor. Unless, of course, you are a casino owner.

You see, the odds in gambling are set to benefit “the house” in the long run. So, mathematically speaking, the longer you gamble the more money you are going to lose.

Meanwhile, as an investor, when you put your money into well-researched, strong investments, the odds of earning a return are in your favor.

For instance, at the time of writing this article, over the last 10 years, the S&P 500 has earned an average annual return of approximately 10% (source). As an investor, I can look at that number and know that it is probably a strong place for me to put my money.

When it comes to gambling, however, those kinds of odds don’t exist over the long-term. Sure, you might win a quick buck here and there, but in the long run, the house always wins.

This is also why people that invest consistently usually end up wealthy, and people that gamble consistently typically end up broke.

3. Compound Interest

Gambling Vs Investing Christian Colleges

As an investor, it is easy to take advantage of the power of compound interest. All you have to do is re-invest your earnings into the same investments that are producing gains, and your money will grow faster and faster. It’s a truly awesome thing to experience.

On the other hand, in order to do the same thing gambling, you would have to win money, and then win more money with the money you already won, and so on. And since the odds are not in your favor, this is an extremely unlikely scenario. And by unlikely, I mean nearly impossible.

4. You Can Diversify Your Investments

If you really want to improve your odds with investing, you have the option of diversifying your investments. For example, you could invest in mutual funds, individual stocks, real estate, and much more.

That way, if one of your investments goes down, and another one goes up, you don’t experience as great of a loss. This is a great way to reduce the likelihood of losing money, and increase your ability to build wealth.

This is not an option when it comes to gambling. Since every gamble carries a high risk of losing money, diversifying your bets would likely only make your odds worse.

5. Humans Play An Important Role In The Outcome Of Investments

The fifth, and my personal favorite, reason why investing and gambling are different, is that humans play a prominent role in the outcome of investments.

For example, when you invest in a company on the stock market, you are putting your money behind executives, employees, and other investors that all have a vested interest in the company earning a profit.

And with all those people working hard to reduce costs, innovate, and grow the company, your likelihood of earning interest on your investment is very good. In other words, humans have the ability to influence the outcome of an investment, which is not the case with gambling.

Truthfully, this isn’t something many people consider when it comes to investing, but it is a critical distinction between investing and gambling. And when you take this critical component into consideration, at least in my experience, investing becomes a much less terrifying venture.

Gambling Vs Investing Christian Beliefs

Final Thoughts

Investing and gambling are two very different things. Let’s review:

• With a wise investment strategy, the odds of success are in your favor. Meanwhile, gambling puts the odds against you.
• When you invest in something, you receive ownership in return for your money. Gambling is a high-risk wager, based heavily on chance.
• As an investor, you have the opportunity to earn compound interest. As a gambler, not so much.
• You can diversify your investments in order to lower your risk of losing money. Meanwhile, all forms of gambling come with a high risk of loss.
• Humans play an important role, and can influence the outcome of many investments. Gambling is based on chance.

So there you have it, the 5 key differences between investing and gambling. If you were a little unsure on the subject, I hope this provided you with some clarity. And if you were on the fence about investing, I hope this provided you with a new and positive perspective.

If you found this article helpful, and you’d like to receive similar financial tips, tricks and recommendations, be sure to subscribe to Be The Budget. Our goal here at Be The Budget is to help you save more money, earn a better living, and make the most of your financial life. If that sounds appealing, we’d love to have you join our community!

You May Also Like:10 Reasons Why Passive Income Is So Important10 Effective Strategies To Save More Money10 Best Ways To Diversify Your IncomeHow Long Should It Take To Build An Emergency Fund?Zach Buchenau is a self-proclaimed personal finance nerd. When he isn't writing about budgeting, getting out of debt, making extra money, and living a frugal life, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of BeTheBudget, and Chipotle's most loyal customer.

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Anti-Gambling Sunday is September 21. To download a free bulletin insert go here.

A dear pastor friend of mine who, like me, finds himself of necessity involved in trying to keep casino gambling out of Kentucky asked me to share some biblical reasons why I believe gambling is wrong. I actually wrote most of the following in 2005 and it was published in the Western Recorder. In order that it might contribute to the debate that now consumes our state, as well as inform some of my students who think it an adiapherous avocation, I share it once again with the conviction that a follower of Christ has no business gambling.

Simply put, gambling is sin.

If no passage of Scripture explicitly forbids it, can we with confidence claim that gambling is wrong, a moral evil, sin? With good reason, Christians are hesitant to label sins that the Bible doesn’t mention, yet we often have to distill principles from the Bible that we apply to contemporary situations. Pornography, computer hacking, or cheating on tests aren’t mentioned in the Bible either, yet believers who want to live like Jesus know intuitively and correctly that these behaviors run counter to the will of God. While biblical texts may not mention them explicitly, biblical principles speak to them directly.

In the same way, the ethics of Scripture clearly teach that gambling is wrong and a sin against God, not for one single reason but for many. The slot machine, casino, or poker table are not for believers submitted to the Lordship of Christ.

Many Christians object that if they budget a certain amount of their discretionary entertainment funds for gambling and don’t go beyond that, what’s the harm? After all, Christian people waste money on all kinds of diversions. Far from convincing me that gambling is not necessarily wrong, this particular argument actually confirms it in my mind, because it reveals a complete disregard for what one’s participation in gambling does to others. This argument reveals a self-centeredness and lack of concern for weaker brothers and sisters that believers ought to find disturbing (Rom. 14:21). In reality, even Christians who are not personally hurt by it are not free to participate in an industry that preys on the weak and the poor.

The Bible is full of references to God’s view of economics. In the garden of Eden, even before sin entered the world, God established a work ethic by which humanity was to exist (Gen. 1:28-30) Part of God’s creation of man in his own image was that man would work for his food. While God provided it, Adam and Eve had to exercise “dominion” over the plants and animals and till the soil, working for their sustenance. After they sinned, work changed to a more laborious task, but it remained the way God provided for them. In other words, God’s way is that we should earn what we get.

Think about these reasons why gambling violates Christian principles:

• Working and investing for a living is based on a win/win scenario, but gambling is always win/lose. God put his stamp of approval on commerce and work. When a carpenter builds a cabinet and gets paid, both parties win. One of them gets the cabinets she wanted, and one of them gets the money he desired. They can both feel good about the transaction. Not so with gambling. Someone always loses and pays a price.
• Gambling is motivated by greed. Let’s be honest and admit that greed lies at the heart of all gambling. The desire to get something for nothing is really another name for covetousness (Exod. 20:17; Prov. 21:25-26).
• Gambling is a wasteful use of the Lord’s money. I doubt that many Christians who gamble tithe, but even if they do, New Testament Christians understand that God doesn’t have the right to only ten percent of our money, but all of it. Even though I am a tither, I am still required to be a steward of all I have because it belongs to God. I am no freer to gamble with God’s money than I am with anyone else’s. Even though others might waste the Lord’s money on equally frivolous things, their sin doesn’t excuse mine.

Gambling shows a lack of love for my neighbor. If I really love my neighbor, I want only what is for his good (Matt. 22:39, 1 Cor. 10:24). When legislators talk about putting casinos on the state line so we can prey on the greed and weakness of our neighbors, they reveal the harmful assault that gambling really is. Can I in good conscience support something that preys on the weaknesses and indulges the worst instincts of the precious people around me?
Gambling fails to consider innocent families. We might be tempted to think that if a person gambles away all of his money, then that is his problem and serves him right. But what of his ten-year-old son who can’t afford school supplies? What of his wife who has to work to pay off the credit cards she didn’t even know she had? What of his ailing parents who cannot count on his help in their senior years? What of his daughter’s college education? Proverbs 15:27 says “A greedy man brings trouble to his family,” and nowhere is that more obvious than in the gambling industry.
Gambling shows no concern for God’s glory. A Jesus-follower should try to glorify God in everything (1 Cor. 10:31), and use his or her money to accomplish good for the kingdom (Matt. 6:19-21, 24).

Gambling is not an act of faith but a game of chance. Paul wrote that “Everything that is not of faith is sin” (Romans 14:23). The Christian life is to be lived in dependence on God to meet all needs according to his glorious riches in Christ Jesus (Phil. 4:19).

Jesus wouldn’t do it. Can you picture Jesus sitting at a slot machine with a cup full of quarters? He was interested in doing his Father’s business, alleviating suffering and grief, not contributing to it.